Moody's rates Esterline SGL-2

Moody's Investors Service said it assigned a speculative-grade liquidity rating of SGL-2 to Esterline Corp., reflecting a good liquidity profile.

The agency also said it affirmed Esterline's Ba2 corporate family and probability of default ratings, $250 million senior unsecured notes due 2020 at Ba3 (LGD 5, 77% from LGD 4, 69%) and $175 million senior unsecured notes due 2017 at Ba3 (LGD 5, 77% from LGD 4, 69%).

The outlook remains positive.

The company's good liquidity profile is characterized by anticipated continued healthy free cash flow generation, roughly $200 million of cash on the balance sheet and ample covenant headroom anticipated over the next four quarters, Moody's said.

The company's ability to sell certain unpledged assets as a source of liquidity also supports the rating, the agency said.

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